Panama's Commerce and Tourism

On this the third day of our official visit to Panama, we are pleased to provide an account of our visits to the Ministry of Commerce and Industry and the Tourism Authority. We were warmly greeted in both government establishments by officials who were eager to share their expertise and also find out more about our country. We arrived at the former destination and were exposed to an overview of Panama’s Free Trade Agreements (FTAs). The speaker engaged us in questions that provided a more detailed account of the events involved in the implementation and policy of FTAs. After this presentation, another speaker offered insight on four (4) main aspects of Panama’s Strategic Plan outlined by the Government for the period 2009-2014. In the afternoon, we ventured to Panama Tourism Authority and were also greeted by a government official who was very eager to promote Panama as a tourist destination by thoroughly explaining its competitive advantages. The accounts written below describe the events of our day in more detail.

Some students sharing a photo with Ms. Jaen.

Our first meeting was facilitated by Ms. Lidia Lena Acosta Jaen,  a lawyer in the International Trade Agreements department. Ms. Jaen’s presentation focused mainly on an overview of Panama’s Free Trade Agreement.   We learned that Panama pursued a policy of liberalization and free trade to promote real integration amongst the world’s leading economies with the World Trade Organization in 1997.  

Panama’s first free trade agreement came about with El Salvador in 2003.  Since then, Panama has formed FTA’s with Taiwan in 2004 to facilitate trade in the fields of plastic processing and construction. Following this, the next trade agreement was formed with Chile, followed by Costa Rica. In 2009, trade agreements were formulated with Guatemala to facilitate trade for oysters and milk. Honduras was then pursued to trade cotton products and cocoa. Nicaragua established an FTA with Panama to create trade with the dairy industry and fruits and fruit juices. The next course of action for Panama is to finalize their Free Trade Agreement with that of the United States.

Following Ms. Jaen’s presentation, we were then given a presentation by Mr. Ricardo Barnett on the Strategic Plans of the Panamanian government for the period 2009 - 2014. Four major sectors were highlighted by Mr. Barnett, namely, 1) Tourism, 2) Logistics, 3) Finance and 4) Agri-Exports.  Mr. Barnett was proud to express that Panama has excelled in the area of Logistics.   Mr. Barnett made mention of the company that works in conjunction with the Ministry of Commerce and Industry, that is, ProInvest. They function as an entity that promotes export of goods from Panama to other countries, and the attraction of foreign investment within Panama.

Ms. Claxton presenting a token of appreciation to Mr. Barnett

We learned that one of the ways the Ministry of Commerce and Industry facilitates entrepreneurs was by making the Ministry into a ‘one stop shop’. In this way, producers can get all the necessary paper work needed to create exportation of goods done at one location. The Ministry also works in close relations with these producers by training them for meetings with potential buyers. This could be regarded as an example of how high the nationals of Panama regard their reputation on the global scale. This helps to create an image for the country that business conducted within Panama is done in a secure manner. To further articulate our tour, the group’s scenic view on the way to Panama’s Tourism Authority brought particular Industries into perspective such as monumental architectural high-rises which showed us, steps towards accommodating Tourism.

Panama Tourism Authority passionately expressed  their function and purpose to support the development of tourism in Panama. Their communication style  and hospitality helped the group realize how they practiced tourism etiquette. The presenter shared an insight into what maybe expressed as “Secrets to Success”. Panama has been tailoring packages to suit the specific needs of their target market by way of extensive market research. He later shared how Panama arrived at focusing on this Industry, where, their main focus on the Canal which decreased in revenue generation which lead to the development of other industries as a result. While creating an emphasis on tourism, Panama focused on areas such as Adventure, Eco-tourism and lately Events and Conferences . They use such target  groups to market Panama to countries . In striving to promote Panama as a destination that can also be a haven to investors they project the ease of doing business in addition to accessible diverse activities making it a complete getaway.

Showing some appreciation to our facilitators at the Ministry of Tourism.

From this experience today we gained a more thorough understanding of the opportunities that present themselves for Panama in leveraging their strong competitive advantages with respect to its trade policies, commerce and tourism. We are also more informed about the objectives established by the government for the country’s development. We are now able to draw comparisons between Panama and Trinidad and Tobago where trade, logistics, commerce, and tourism are concerned. We are truly grateful that we are able to experience what our country aspires to so that we can make erudite decisions regarding our short term deliverables for the program (a business plan and a research project) as well as beyond. In closing, we would like to sincerely thank UTT for strategically positioning us, as future entrepreneurs, at the epicenter of development in the Latin American and Caribbean region.

Welcome smiles from the presenters at the Ministry of Tourism.

By Marisa, Denizia and Chinyere.